Question
Cairo Co. can produce 3 products A, B & C; the following data is estimated to help in preparing the production plan for the coming
Cairo Co. can produce 3 products A, B & C; the following data is estimated to help in preparing the production plan for the coming period to maximize the profit:
| A | B | C |
Price | $ 30 | $50 | $30 |
Variable cost | $ 18 | 35 | 20 |
Demand (maximum sales) | 2000 units | 4000 units | 5000 units |
Machine hours per unit | 4 hours | 3 hours | 5 hours |
Machine hours per unit | 3 | 5 | 2 |
The fixed cost for the Co. is $10000 regardless the production plan.
The total machine hours are 30,000 hours (maximum capacity).
Required:
1- Prepare the production plan.
2- Prepare the income statement (Fixed cost is allocated according the sales revenue).
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